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   &lt;div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"&gt;All of our foreign currency forward contracts were accounted for as cash flow hedges under ASC
   Topic 815, &lt;i&gt;Derivatives and Hedging&lt;/i&gt;. The fair market value of these derivative instruments is
   included in other current assets or accrued expenses and other current liabilities, with the
   cumulative unrealized gain or loss included in accumulated other comprehensive income in our
   consolidated balance sheet. The payroll and related costs that are being hedged are included in
   accrued expenses and other current liabilities in our consolidated balance sheet, with the realized
   gain or loss associated with the revaluation of these liabilities from euros to U.S. dollars
   included in other income (expense). Amounts recorded in accumulated other comprehensive income
   associated with the derivative instruments are subsequently reclassed into other income (expense)
   as earnings are affected by the underlying hedged forecasted transactions. The estimated fair
   market value of our outstanding foreign currency forward contracts resulted in a liability of
   approximately $0.3&amp;#160;million at June&amp;#160;30, 2010. Hedge effectiveness is measured quarterly based on the
   relative cumulative changes in fair value between derivative contracts and the hedged item over
   time. Any change in fair value resulting from ineffectiveness is recognized immediately in earnings
   and recorded to other income (expense). We did not recognize a gain or loss due to hedge
   ineffectiveness in our consolidated statements of operations for the three months ended June&amp;#160;30,
   2010 related to these derivative instruments.
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